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    Efficiency of Sales Promotions in Cellular Industry of Pakistan

    by

    [Ali Nawaz Talpur]

    Birmingham City University

    City of London College

    2011

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    Cellular Industry ii

    Acknowledgement

    I would take this opportunity to thank my research supervisor Dr Geoff Lancaster, family and

    friends for their support and guidance without which this research would not have been possible.

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    DECLARATION

    I Ali Nawaz Talpur, declare that the contents of this dissertation/thesis represent my own

    unaided work, and that the dissertation/thesis has not previously been submitted for academic

    examination towards any qualification. Furthermore, it represents my own opinions and not

    necessarily those of the University.

    Signed __________________ Date _________________

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    Abstract

    In this study we try to explore the concept of cellular industry in a holistic context. The main

    focus of the research is on sales promotions and its relation with cellular industry of Pakistan.

    The research also analyzes many aspects of cellular companies and tries to gauge its effect on

    customer loyalty. Finally the research describes various factors which are responsible for

    customer loyalty on cellular companies and tries to describe the overall effect of progress of a

    specific cellular company in Pakistan.

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    Table of Contents

    ACKNOWLEDGEMENT .........................................................................................................................................IIDECLARATION ...................................................................................................................................................... IIIABSTRACT .............................................................................................................................................................. IVCHAPTER 1: INTRODUCTION............................................................................................................................... 1

    Background of the Study ......................................................................................................... 1Aim of the research ................................................................................................................. 2Significance of the study ......................................................................................................... 2Research Questions................................................................................................................. 2Ethical Considerations............................................................................................................ 2

    CHAPTER 2: LITERATURE REVIEW .................................................................................................................. 4Pakistan................................................................................................................................... 4Mobile Industry of Pakistan .................................................................................................... 5Cellular Companies of Pakistan ............................................................................................. 6Mobile Communities in Pakistan ............................................................................................ 7Other Mobile Services in Pakistan ......................................................................................... 9Other Asian Countries .......................................................................................................... 10Issues in the Cellular Industry of Pakistan ........................................................................... 12Switching Costs in the Cellular Industry of Pakistan ........................................................... 13Telecommunication Service Quality in Pakistan .................................................................. 14Brand Trust in the Cellular Industry of Pakistan ................................................................. 15Elements of the Cellular Industry of Pakistan ...................................................................... 16Competition in the Cellular Industry of Pakistan ................................................................. 20Opportunities for Pakistan Telecom ..................................................................................... 20

    CHAPTER 3: METHODOLOGY ........................................................................................................................... 21Qualitative Research............................................................................................................. 21Casual Comparative Research ............................................................................................. 21Experimental Research ......................................................................................................... 21Co-Relational Research ........................................................................................................ 22Mixed Research..................................................................................................................... 22

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    Classification of Research Methods...................................................................................... 23Multi-Method Studies............................................................................................................ 23Mixed-Method Studies .......................................................................................................... 23Steps in Mixed Methodology ................................................................................................. 24Research Design ................................................................................................................... 24Research Instrument............................................................................................................. 25Literature Selection Criteria................................................................................................. 25Search Technique.................................................................................................................. 25Keywords Used..................................................................................................................... 25Reliability/Dependability ...................................................................................................... 25Validity.................................................................................................................................. 27Credibility ............................................................................................................................. 29

    CHAPTER 4: DISCUSSION AND ANALYSIS ..................................................................................................... 30CHAPTER 5: CONCLUSION ................................................................................................................................. 34REFERENCES .......................................................................................................................................................... 40

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    Cellular Industry 1

    CHAPTER 1: INTRODUCTION

    Background of the Study

    In the most developed countries laptops, Wi-Fi and faster and faster wireless telecom

    networks have for long time made mobile access to various digital services possible while on the

    move. Still, large and instant mobile communities can only rely on more portable devices, such

    as mobile phones. Mobile devices are often the only access to Internet and digital services. The

    number of mobile devices being used in developing countries has exceeded four billions and is

    still growing. Especially in developing countries like Pakistan, the cellular industry is expandingday by day. (Anderson, 1994, pp 53-66)

    It is all because of the extra ordinary campaigning of the cellular companies that are

    operating in Pakistan. The cellular companies based in Pakistan hire the most renowned faces as

    their brand ambassadors to endorse their brands and make them compete with each other. They

    all used all the possible marketing techniques to cut each other's business by all means. They

    promote their brands by introducing reasonable packages for all age groups which are cheaper

    than the packages introduced by their opponents. This competition and marketing strategies

    make the business of the cellular industry of Pakistan, more interesting. In this paper, we have

    analyzed the various mobile communities functioning in Pakistan and the immense promotions

    that they do to increase their sales through different forms of media such as television

    commercials, print media, social media sites and several other ways. We have discussed the

    phenomena encountered in developing countries, like how the mobile technology transforms the

    rural areas. We have taken a closer look at the development in Pakistan in the telecommunication

    sector because of the efficiency of sales promotions in cellular industry of Pakistan.

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    Aim of the research

    The research aims to assess the efficiency of sales promotions in cellular industry of

    Pakistan and the affect it has made on the overall industry.

    Significance of the study

    The research is very useful to know the efficiency of sales promotions in cellular industry

    of Pakistan. Moreover, it will also help to assess the effect that it has made on the entire cellular

    industry.

    Research Questions

    The study analyzes the following research questions:

    What is the role of mobile phones in the cellular industry of Pakistan? What is the efficiency of sales promotions in cellular industry of Pakistan? What is the affect of the cellular industry in the overall economy of Pakistan? What is the impact of telecommunication service quality (TSQ), trust, switching

    costs (SC) and staff loyalty (SL), on the loyalty exhibited by customers?

    Ethical Considerations

    In addition to obtaining a signed consent form prior to conducting the survey; the

    researcher has taken steps to make sure that "genuine informed consent" has been granted by the

    respondents. To accomplish this objective, information regarding the nature of the study is

    presented prior to conducting the survey. Additionally, the respondents are informed that a

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    debriefing session is held at the end of the survey to allow the participant to reflect on their

    answers and clarify anything that they believe might be inaccurate or incomplete. Ethical

    considerations are given a great level of importance when a research for a particular study is

    being conducted by the researcher.

    The main focus of ethical considerations in a research is given to genuine information

    granted by the respondents of the study. This means that whenever research questions are put

    before the respondents of the study, they should provide authentic and genuine information in

    order to make the research valid and authentic. To make the study more reliable, it is important

    that the introduction about the study is provided to the respondents so that they get to have anidea about the nature of the study. It is also important that after the study is conducted, there

    should be a separate session between the respondents and the researcher(s) to clear the concepts

    of the respondents and complete their information, which might have been left unclear and

    incomplete.

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    CHAPTER 2: LITERATURE REVIEW

    Pakistan

    Pakistan is country with estimated 174 million inhabitants. There are currently about 100

    million mobile subscribers in the country. The announced penetration rate was ca. 60 % at the

    end of 2009, but with the above estimated population size the penetration would be ca. 57 %.

    The statistics mentioned above, show that the cellular networks went into operation about ten

    years ago. In 2004 the mobile penetration was about 3 %, but during 2005-2008 a huge growth

    happened and the mobile penetration reached ca. 55 % at the end of 2008. During 2009 there wasonly 4 % of growth. The number of fixed line subscribers has reached ca. 5.3 millions in 2005

    and has declined since then to 3.5 million in 2009. Wireless local loop subscribers have grown

    since 2005 to ca. 2.7 million in 2009. The statistics tells that there are ca. 4.5 million subscribers

    with access to Internet such as Dial up, DSL, WiMAX, etc. (Antreas 2003 pp 224-245)

    One sees from the statistics that the five mobile telecom networks are the main access to

    telecom services in Pakistan. Unfortunately, the number of Internet enabled handsets is not

    available, but all networks were 2G networks (GSM, CDMA One) and the GSM networks

    offered GPRS and EDGE services at the end of 2009. Even with relatively low penetration in

    rural areas of Pakistan, mobile communication has radically improved the life standards and

    economic state of the rural population. With five telecom operators and competitive call rates as

    low as 0.0148 US$/min, 0.00858 US$/SMS the cost of cell phone per person is less than the

    benefits one individual gets even in rural areas of Pakistan. The ARPU is US$ 2.83 in Pakistan

    whereas in developed countries it is typically tens of dollars/month.

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    According to the mobile basket with 25 outgoing calls and 30 SMS messages costs 1.6

    US$/month. This is roughly half of the observed ARPU which means that there are more than 25

    outgoing calls or that they last longer than expected. With the above minute price the average

    number of spoken minutes/month/subscriber is roughly 200 that are in line with the number of

    spoken minutes in other countries. (Aydin 2006 pp 141-155) Pakistan is an economy relying on

    agriculture and most part of the population lives in the rural areas. There, the mobile phone

    brings a revolution e.g. in the way crops are sold. The grandfather of one of the authors used to

    sell the crops for the price which was told by the middle man (a roaming agent) who came to buy

    the crops to the village. However, the father of the author can make a mobile phone call andinquire about crop rate in the Pakistani crop market. This makes his agriculture business more

    profitable, because he has direct information about the market situation instead of indirect

    information through the middle-man (that might be distorted for various reasons).

    Mobile Industry of Pakistan

    In the era of globalization and information society, the fundamental role of

    telecommunication technologies cannot be underestimated. Pakistan's mobile Industry is a

    dynamic and highly competitive market. Cellular mobile telecommunication services were

    introduced in Pakistan in 1990 and now Pakistan stands as one of the largest telecom subscriber

    with the cheapest calling rates in the region. Our Industry already has LL (Local Loop), WLL

    (Wireless Local Loop), LDI (Long distance and International), and ISP (Internet Service

    Provider) players and WiMax; 3G cellular systems are expected be a part of this Industry soon.

    As a result of unstable and weakening macroeconomic indicators the growth in cellular segment

    has considerably slowed down. As per Bloomberg, Mobilink leads the market with 35.3%

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    market share, followed by Ufone (20.8%), Telenor (20.5%), Warid (17.8%), Zong (5.4%) and

    Instaphone (0.4%). (Bolton 1991 pp 375-384)

    Cellular Companies of Pakistan

    The major players of the cellular industry in Pakistan are Mobilink, Ufone, Telenor,

    Warid and Zong. At present, Mobilink has the largest coverage network across the nation,

    covering more than 15,000 locations. Telenor claims that it is now acquiring more than 25,000

    new subscribers every day, whereas Ufone claims to cover over 4560 key destinations. (Brown

    2001)

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    Mobile Communities in Pakistan

    Not only economics but mobile phone and communication is influencing education and

    literacy as well in positive manner. A UNESCO sustainable literacy pilot program using Mobile

    Phone SMS text messaging has shown significant results in rural Pakistan. In this pilot the

    learners, who had just completed the basic literacy course, were given a mobile phone each.

    They received three text messages a day in the local language. They were required to practice

    reading and writing the messages in their work book and reply to their teachers by text messages.

    The program run by United Nations Educational, Scientific and Cultural Organization

    (UNESCO), targeted 250 females aged 15 to 24 years old in three districts.Monthly assessments held at the learning centres showed improvement in literacy skills.

    An effort similar in goals, but technically much more sophisticated, is underway with Nokia

    Corporation. Univ. of Jyvaskyla researchers developed a learning game for kids that had

    problems in learning to read. This game has been ported to mobile handsets and modified to the

    needs of normal adults. It can be used to teach illiterate adults to learn to read without any further

    need for infrastructure in their mother tongue. The main challenge is to develop the correct

    digital audio models for each natural language and to attach the correct written symbol(s) to the

    audio model element (such as letter "a" or "b" to the correct spoken vowel or consonant sound in

    the language). (Buttle 1996 pp 8-32)

    The negotiations are underway with Nokia Corporation to include this game to the

    handsets sold in certain developing countries for free. It is an interesting further question, which

    way works better in teaching the adult women or men to read, the handset based self-learning or

    teacher-controlled remote learning. PC World reported in Feb 2009 that Pakistani's generated

    763 million text messages during New Year Season 2008/2009 and stood fourth for SMS traffic

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    European countries. If we consider the relation between voice call and SMS usage in Pakistan, it

    is interesting to observe that SMS usage in the country is not a replacement of verbal

    communication but SMS is used either as an add on or for mass communication such as political

    broadcast (cf. above). (Cronbach 1951 297-334)

    Tele density in rural areas of Pakistan is lower than Tele density of urban areas. This can

    be solely based on the coverage maps.

    Women in Pakistan are less likely to use mobile as a source of communication with

    comparison to male usage of mobile communication. This can be argued based on the recent

    report, although the research was performed in Bolivia, Egypt, India and Kenya, and on.Basic services of mobile (voice calls and SMS) are major chunk of ARPU and advanced

    services such as MCommerce and GPRS have a relatively low contribution as compared to

    mobile usage trends in Europe and other developed countries. A cell phone is not only a device

    for communication but also means enhanced security in increasingly insecure law and order

    situations of Pakistan. As a developing country, mobile phones are used in many different ways

    which are not seen in highly developed countries.

    Other Mobile Services in Pakistan

    One of the telecom operators in Pakistan offers mobile PCOs (Public Call Offices) for its

    customers. This product provides entrepreneurship opportunities to e.g. unemployed. It directly

    benefits the under-privileged section of the society. It not only provides new way of earning, but

    also facilitates communication to the far-flung areas, offering a reliable source of income for

    economically challenged areas. It targets women at home, retired personnel and jobless youth. It

    can be a part time or full time job, especially for the middle class. Another interesting service

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    provided by the leading telecom operator of Pakistan is "Kisan" service. It is an interactive voice

    recognition (IVR) based service focusing on farmers' needs. By calling on the number "700",

    they can choose "price of the day" (of various products on different markets), "advice on

    harvest" (what to do with a particular crops and what pesticides to use), or (5 days) "weather

    forecast". The service selection can be done by dialling pad or by speaking, whereas the response

    is spoken. Another mobile service which is gaining popularity is Pakistan is "Talking Books".

    This service provides illiterate, the ability to listen to books read. The customer can listen to the

    book of choice through an IVR based service.

    Other Asian Countries

    Pakistan is one of the countries in the Middle-East that has experienced rapid growth in

    mobile telecommunications. Almost similar growth rates have been reached in the neighbouring

    countries. India had 525.15 million subscribers in total, or a 44.73% penetration rate at the end of

    2009. India has already launched 3G networks. Kazakhstan had ca. 12 million subscribers and

    penetration rate of 85 % a year ago. Nepal had 4.238 million subscribers in total, or a 15.72%

    penetration rate (December 2008). Afghanistan had in 2007 12.9 million subscribers in total, or a

    35% penetration rate. Bangladesh has 52.43 million subscribers in total, penetration rate might

    be ca. 30 % for the estimated population of 156 millions (January 2010). Thus, one can say that

    the mobile telecom network development depends on the economic factors. This is established

    also empirically in. (Cronin 1992 pp 55-68)

    Poorest countries like Laos or Nepal have penetration rate of 10-15 %, but Malaysia has

    passed already penetration rate of 104 % and launched 3G networks. All networks in Malaysia

    (GDP 6000-7000 US$/person/year) are GSM or UMTS networks. In many countries with large

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    population the penetration rate does not exceed 65 %. Is there a limit for this that depends on the

    number of rural population and perhaps of the costs of erecting a mobile network (especially

    mountains, jungles)? This we cannot answer currently. The ITU penetration statistics shows that

    the mobile subscriber base begins to form first in the highest income tiers and moves downwards

    the poor tiers. In 2007 the penetration was only 23 % in the low income tier, whereas it was 90 %

    in the high income tier SMS services are in wide use e.g. in Philippines where sent one billion

    text messages/day were sent.

    The services also include financial transactions over mobile networks and Philippines

    might be the leading developing country in the usage of the SMS and other mobile services. Asconcerns mobile communities in the Asian developing countries they are mostly of type 1). SMS

    services have been used also in political campaigns in Asia (Indonesia, Thailand, and Pakistan)

    and in mHealth projects in various countries. The type of the communities can be seen from the

    usage statistics of SMS. All in all ca. 4 trillion SMS were sent in 2009 and the revenues

    generated were $100 billions in the world. (Fornell 1996 pp 7-18)

    For operators this kind of messaging service is a good source of revenues, because

    offering the service does not require much investments (Message Switching Centre, though), but

    the revenues are considerable. There is a recent socio-economic study made in Bangladesh about

    the usage of mobile phones. It reveals that majority of the subscribers are male (85 % against

    15%, p. 42) and that the relative frequency of subscribers is highest among young people (15-30

    years, ibid, p. 42). Mobile phones have substantially reduced the usage of postal services and

    physical visits in keeping up ties to relatives and friends (ibid, p.44). Circa 50 % of the

    subscribers were businessmen, 18 % service holders, 25 % students, and 3 % housewives (ibid,

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    p. 45). In the study it was also investigated how many users know that their operator provides

    Internet access in their network.

    Only 37 % of the users were aware of this (ibid, p. 50). Those who used Internet, used it

    mostly for entertainment purposes (80 %) or communication (14 %). Business usage was about

    4-5 %. A new business model was also observed: village phone. There is a private subscriber

    who lets others to use the phone for money. Introduction of mobile phones has increased social

    cohesion, lowered transport costs (less need to travel to relatives), and mitigated the

    consequences of natural catastrophes (ibid, p. 89). Mobile phones also promote social

    responsibility. On the negative side elder people find that young people waste money and timefor mobile phones. Unfortunately, the author above has not investigated the usage of SMS

    services among the 180 test persons. (Goode, 1996, pp 93-112)

    Issues in the Cellular Industry of Pakistan

    As with any other industry, the Pakistani cellular Industry is also facing some regulatory

    issues since its inception. Recently a total of 15.5 million connections have been blocked, mainly

    due to non verification of SIM Ids by NADRA. Adherence of security parameters and strictly

    following standard operating procedure is a novel concept and requires strict regulations and

    controls by the governing bodies. PTA is also monitoring illegal telecom traffic. A project

    pertaining to setting up of an International Clearing House (ICH) is under consideration; it will

    be a joint venture of PTA and LDI operators for Reconciliation of International Telephonic

    Traffic (RITT). This system will be beneficial for the Government of Pakistan to the form of

    remittances worth millions of dollars, also ensuring factual recording of inbound and outbound

    traffic.

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    According to PTA authorities, the present broadband costs are high; whereas broadband

    usage has witnessed a slow growth in the recent quarter in Pakistan. A survey conducted by PTA

    revealed introduction of mobile communications (mobile commerce, video streaming, high speed

    mobile internet, and other value added services) has considerably increased its usage. The

    telecom sector has a growth rate of around 45% over the last year, the mobile subscriber base has

    crossed the 90 million mark, still adding around 2.5 million subscribers per month; thereby

    witnessing growth. At present mobile coverage is available to over 92% population of the

    country and with the implementation of USF projects; it is expected to cover the entire country.

    (Lee, 2001, pp 35-48)The recent focus of the industry is the proliferation of broadband services at affordable

    rates throughout the nation. The latest technology of 3G mobile communicators (mobile

    broadband) has been earmarked and PTA will soon be inviting applications for 3G spectrum

    auction. This technology will increase operating capacity and revenues by using HSPA

    technology; at the same time it will also provide superior and high speed broadband services,

    video telephony, internet, video streaming, high quality mobile TV and a number of value added

    services. The players are focusing on mass advertisement, offering to expand coverage, customer

    services and unique and attractive packages.

    Switching Costs in the Cellular Industry of Pakistan

    Switching costs is considered to be a very major issue in the cellular industry of Pakistan.

    Switching cost is taken in terms of Phone Number Value, Study Cost, Accumulated Scores of

    Service and Additional Services. Out of all the subcategories of SC, study cost that is defined in

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    terms of time and effort spend by a customer in deciding about new and alternative offers, has

    been excluded as its omission gave a better reliability by improving the Cronbach ' s of SC.

    Switching Cost has a number of long term implications for customer loyalty. In the first

    instance, the more a customer stays with a service provider, his stakes grow and he finds it

    increasingly difficult to switch to any other operator. This creates a long-term customer lock-in.

    (McDougall, 1994, pp 189)

    Second, higher switching costs discourage the loyal customers from having interaction

    with service providers who offer competitive services. The customers consider switching costs as

    a discouraging factor because the phone number value acts as a contact point and reference.Hence, peer group expectations, norms and pressure for conformity could discourage customers

    from switching. 40 Service providers generally raise the switching costs by providing privilege

    in terms of free talk time, discounts and free numbers and so on so as to discourage migration

    from one service provider to another. Allied services such as free short message service (SMS)

    and low cost of the package also raise opportunity costs and add to switching.

    Telecommunication Service Quality in Pakistan

    The telecommunication service quality in Pakistan is further split into Communication

    Guarantee, Settlement Service, Value Added Service (VAS) and Technology Innovation.

    Communication Guarantee results when the quality of network of the service provider is

    satisfactory and there are negligible rates of call failure. The Settlement Service refers to the

    prompt and accurate billing service that also enhances customer satisfaction. Customer

    satisfaction level can also be influenced by VAS, for example, GPRS, Media file sharing, news

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    updates and so on. Finally, Technology Innovation refers to the feature where in the service

    provider rolls out new technology on a regular basis. (Spreng, 1996, pp 201)

    Brand Trust in the Cellular Industry of Pakistan

    Brand trust in the cellular industry of Pakistan is found to increase customers'

    commitment, which weakens customers' propensity to switch. There are 6 major cellular

    companies which are currently operating in Pakistan. They include Mobilink, Ufone, Telenor,

    Warid, Zong and Insta. All these companies have their own set of loyal customers who are using

    their cellular and other additional services since years. Brand Trust is a key element to build

    customer loyalty and is measured in terms of Brand Promise, Communication and Experience.Brand Promise works best in an environment marked with uncertainty, as it is for the customer

    feels vulnerable and, hence, relies upon trusted brand. Communication ensures that the service

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    provider regularly keeps in touch with the customers about new offers, packages and so on.

    (Monroe 1991)

    Positive experience of the customers makes up a trusting relationship with the particular

    brand. This model also incorporated Relations Interact as the subset of Trust. The importance of

    this sub-construct is substantiated by the fact that the social structure of Pakistan and the

    environment of telecommunication industry are so organized that social interacts, for instance,

    family, friends, advertisement, celebrity endorsement, mobile phone dealers, all play a

    contributing role in influencing the adoption of a particular telecom service. People in Pakistan

    get hugely affected by the advertisement campaigns and promos so the companies spend millionsof rupees on their advertisements to attract customers (Sureshchandar, 2001, pp 111-124).

    The companies usually hire national heroes such as showbiz celebrities, sportsmen,

    musicians and other inspiring faces in order to make their campaigns more effective and attract

    more and more customers towards their brands.

    Elements of the Cellular Industry of Pakistan

    Ethics and Quality Relationship

    A number of advocates for quality contend that firms who embrace TQM will

    automatically and naturally act in ethically sound ways. Any organization can achieve excellence

    with their cost effective solutions, quality of products and services, speed of availability of

    service and products, value system. Ethics are the foundation of the TQM philosophy.

    Organizational ethics establish a business code of ethics that outlines guidelines that all

    employees are to adhere to in the performance of their work. TQM is built on a foundation of

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    ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by

    everyone. This is the key to unlocking the ultimate potential of TQM. Ethics plays a critical role

    in the successful application of total quality in the cellular industry of Pakistan. Ethical

    behaviour on the part of the cellular companies' bases in Pakistan is equally important for

    example include; honouring warranties, employee treatment, proper facilitation of the customers,

    etc. (Teas 1994 pp 132-139)

    Integrity and Quality

    Integrity, as a personal and organizational characteristic, combines honesty anddependability. When there is integrity, ethical behaviour automatically follows. Integrity is more

    than just honesty. People and organization with integrity can be counted to do the right thing, do

    things right, accomplish tasks thoroughly and completely, complete work on time, and keep

    promises. (Woo 1999 pp 162-174)

    Responsibility and Quality

    Part of ethical behaviour is accepting responsibility. It is important to the today world

    litigious society that, as a rule, shuns responsibility. People want to blame others for their own

    shortcomings and failures. Passing blame has become commonplace. And this is not ethical. In a

    total quality setting people are responsible for their actions and accountable for their

    performance. Accepting responsibility helps build trust and integrity. (Oliver 1977 pp 246-250)

    (Oliver 1989 pp 1-16)

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    Ethics Implementation for Quality

    Implementation of ethics is the responsibility of organizations top management.

    Managers have 3 main responsibilities for setting an example of ethical behaviour, helping

    employees make ethical choices and finally helping employees follow ethical behaviour.

    Managers can use three approaches to carry out their responsibilities. Best Ratio approach says

    that People are basically good, hence create appropriate conditions. Black and White Approach

    argues that Right is right, wrong is wrong, hence make ethical decisions and carry them out Full-

    Potential Approach demands that People are responsible for realizing their full potential; hence

    decisions made should focus achieving this potential. (Zeithaml 1988 pp 2-22)

    Quality of Service in Telecom Industry of Pakistan

    'Quality of Service' is the main indicator of the performance of a telephone network and

    of the degree to which the network conforms to the stipulated norms. The cellular companies

    operating in Pakistan must keep improving their quality of service to retain their loyal customers

    and in order to increase their brand share and profitability. It is a known fact that long term

    customers spend more, refer new clients and are less costly to do business with. It is claimed by

    Reichheld and Sasser (1990) that a 5% improvement in customer retention can cause an increase

    in profitability between 25% and 85% (in terms of net present value) depending upon the

    industry The subscriber's perception of the Quality of Service is determined by a number of

    performance factors, these are: (Zeithaml 1996 pp 31-46)

    Mobile Network Performance, Reliability & Availability We can determine the quality of

    service of a mobile network by various parameters such as phone working & always available,

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    making & receiving calls easily, getting clear voice quality of phone, less call drops during

    conversation, less breakdowns/faults in phone. (Sharma 2004 pp 109-128)

    Billing System

    Accuracy of bill, Timeliness of the bill to help plan payment and Clarity of the bill are the

    key parameters for the company's billing system. We can quantify the efficiency of billing

    system by measuring billing complaints per 100 bills issued, period of billing complaint

    resolution, period of refund to customers.

    Hidden Charges

    Clarity of Bill, pre information of all charges to the customer, Taxes explanation should

    be considered the parameters for hidden charges.

    Service Provision

    Ease of applying and time taken to get phone improves the quality of service of a mobile

    company. Customers are much delighted with the companies whose processes are simple and

    non bureaucratic.

    Unsolicited Calls

    No. of complaints of obnoxious calls and message from customer, provision to block the

    unwanted callers can improve the service quality of a company.

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    Competition in the Cellular Industry of Pakistan

    A tough competition is expected as in the present scenario existing players are having a

    price war to attract existing and new users. Mostly the audience is subjected to deceptive

    advertisements and misleading offers which directly impacts consumer purchase decision. Going

    forward we expect Mobilink to face tough competition mainly because its marketing strategy has

    always focused the elite class of the society and hasn't gotten a diversified consumer base like

    other cellular companies. Whereas, Telenor, Warid and Ufone enjoy a diversified consumer base

    with their main focus on middle and lower class income group. (Parasuraman 1988 pp 12-40)

    Opportunities for Pakistan Telecom

    Pakistan Telecom has a lot more to achieve, the industry may further expand and lower

    tariffs can also be achieved. The present players have many chances to take the lead, as

    consumers are more well-aware about their purchase decision concepts such as connectivity,

    coverage, voice quality and value added services and will only go for the best packages

    available.

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    CHAPTER 3: METHODOLOGY

    Qualitative Research

    A qualititative research helps to cater a lot of other research methods to make the

    research authentic and worthy. It actually plays a very vital role in making a research successful.

    It is also termed as qualitative inquiry in the research terms. Although all the researches have

    their own policies and procedures to follow, there are a lot of qualitative labels that are named

    under the qualitative research. Some of such qualititative labels include ethno methodology,

    grounded theory, participatory action research; phenomenology etc. It is very different from thequantititative research approach. It is different at every stage of research and may prove to be

    very useful in order to conduct a research study.

    Casual Comparative Research

    When two or more variables cannot be measured through the coefficient of co relation,

    then, the casual comparative research approach is brought in to the research. It helps a researcher

    for the testing of hypothesis conducted in the study. Casual comparative method is used when a

    researcher cannot assign the variables to a particular group of research. The major relationships

    that it helps to investigate are socio economic status, intelligence, creativity etc.

    Experimental Research

    Control is the essence of the experimental research approach. An Experimental research

    comprises of 3 characteristics. It is based on the relationship between the dependent variable and

    independent variable. For Example, an independent variable can be supposed as a cause and on

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    the other hand, the dependent variable can be supposed as an effect. Simple Samples are selected

    randomly to carry out this type of research approach.

    Co-Relational Research

    A co-relational research is one that helps to measure the relationship between the

    quantifiable variables. The Quantifiable variables may be two or more in number. In a co-

    relational research, the researcher collects data from two variables of the research and then

    compares them accordingly. The Coefficient of co relation helps to measure the correlation

    between the two variables of the study, if the coefficient of correlation is 0, it means that there isno relation between the two variables. On the other hand, if the coefficient of correlation is 1, it

    means that a relation between the two variables exists.

    Mixed Research

    The technique in which the qualitative and quantitative techniques are used collectively

    for data collection purpose is called mixed research. Mixed research method is the third most

    important research. The results of the mixed methodology are more reliable because it is more

    descriptive in nature. The supporters of this methodology usually stick to the philosophy of

    pragmatism and the compatibility thesis. The concept of compatibility thesis is that the

    quantitative and the qualitative methods both are related, and compatible to each other and their

    combination can be used to analyze the data in one research. On the other hand, the pragmatism

    philosophy suggests that the techniques used for the data analysis should be such that provide the

    proper and practical result and the approaches must be applicable in the real world, as well.

    Nowadays the mixed-method supporters use the fundamental principles of mixed research and

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    this principle suggests that the researcher must use such approaches, which collectively have,

    more strength and weaknesses. This way the results would be more validated and accurate.

    Classification of Research Methods

    Many techniques can be used to combine different research methods for the social

    research context. The combination types are explained below. The multi method and mixed-

    method studies are considered as two concepts in the literature.

    Multi-Method Studies

    Different methods for analysis and collection of data are used in the multi-method

    studies, in a single research. There are many examples for this and one of them is the qualitative

    study in which the interview and the observation technique are used collectively. On the other

    hand in the quantitative study, the researcher might collect data from computer resources also

    from students, as well. In simple words, the researcher takes the methods which are broadly

    compatible for a given set of values.

    Mixed-Method Studies

    The approach of mixed methods combines different methods together. This approach also

    includes the semi-structured interview as well as the target population for the purpose of the

    survey. Another name for mixed methodology is the multi strategy research.

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    Steps in Mixed Methodology

    The steps in the mixed methodology are usually numbered, but their application may vary

    from research to research. There are eight basic steps in the mixed methodology which have been

    explained below:

    First and foremost the research must analyze the mixed methodology and decide whether

    this methodology is appropriate or not. The researcher must choose it if it properly answers all

    the research questions and provide a reliable result.

    The rationale must be determined appropriately. And the rationales include the

    triangulation, the complementarity, the development, the initiation and the expansion.

    The research design must be selected properly. The data must be collected using different collection methods. The data must be analyzed properly. The data must be validated throughout the study so that the research results are

    reliable.

    The research must interpret the data. Finally the researcher must interpret it properly.

    Research Design

    This study followed the mixed method to analyze the research question. For this purpose,

    secondary data was collected from the reliable data bases, and for the primary research, an

    interview was conducted from different journalists.

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    Research Instrument

    The Case Study was used as the research instrument to conduct the study.

    Literature Selection Criteria

    The selection criteria for the literature were twofold: relevance and the year of

    publication.

    Search Technique

    Libraries including online databases were accessed to get the most relevant and updatedliterature. Some of the online databases that were used are EBSCO, Emerald, Blackwell, etc.

    Keywords Used

    Keywords used were cellular industry of Pakistan, mobile services, mobile industry, and

    cellular companies in Pakistan and so on.

    Reliability/Dependability

    Long & Johnson (2000) provided several definitions of reliability, which they observed

    like being analogous to dependability, in their article regarding the requirement for rigor in

    qualitative research. They cited Polit & Hungler (1995) in defining reliability as the ability of the

    instrument to measure that which it is measuring, and LoBiond-Wood & Haber (1998) whose

    definition was "the consistency or constancy of a measuring instrument". As previously

    observed, the researcher herself is the research instrument. These definitions reiterate the

    requirement for the researcher to bracket out the preconceptions and remain as detached as

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    possible. Long & Johnson presented a third definition from Hammersley (1992) that stated that

    reliability in qualitative research "refers to the degree of consistency with which instances are

    assigned in the similar category by different observers or by the similar observer on different

    occasions". This last definition recognized a more active role for the researcher than the first two

    definitions, however, all relate to confidence in data collection.

    Having established an understanding of what is meant by dependability, the next logical

    question is: How to evaluate the dependability of a research project? Long & Johnson found

    value and used Brink's (1991) tests for stability, consistency and equivalence to check the

    reliability of qualitative research. The stability of findings is considered to be in place when thesimilar questions are asked of co-researchers at different time's yields the similar answer.

    Consistency is found among each individual respondent and relates to ensuring that the questions

    pertain to the topic under study. Equivalence is also found among the questionnaire process and

    refers to asking questions in alternate forms in order to check for concordant answers.

    Long and Johnson presented two techniques for establishing the reliability of the study,

    audit of the decision trail and triangulation. The technique of auditing of the decision trail is

    attributed to Sandelowski (1986) and requires the researcher to disclose the details concerning all

    sources of data. This allows the research to be evaluated by others who have a baseline for

    evaluation. This study provided a basis for auditing the decision trail by presentation of the data

    analysis and disclosure of researcher bias. Triangulation employs the use of "multiple data

    sources, data collection methods, or investigators". Triangulation might have a role in

    establishing the validity of the study as well, but Long & Johnson minimized this role by

    referring to the work of Bloor (1997) and stated that "triangulation might illuminate different

    perspectives on the problem but does not provide any test of validity". Based on this perspective,

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    these authors hold that triangulation does not confirm the veracity of the facts for the purpose of

    validation; it is rather a tool to use in evaluating the quality of the inferences made from the data

    and speaks to the reliability of findings.

    Validity

    While reliability referred to the constancy and repeatability of the instrument, validity

    considers the ability of the instrument to represent the characteristics of a phenomenon. Validity

    could be considered from three perspectives: "content validity, criterion-related validity, and

    construct validity". Content validity is primarily concerned with the samples and instrumentsused in the study and addresses the extent to which ensures that the phenomenon is explored in

    sufficient detail. Criterion-related validity refers to comparing of the method and findings of the

    study against an "established standard". Construct validity is a function of the closeness of the

    instrument to the construct being studied.

    Payne & Williams (2005) presented validity from the perspectives of internal and

    external validity. They observed that internal validity is a product of the quality of the original

    research and to some degree could be assessed based on the quality of the methodology

    employed. They both observed that external validity might be evaluated by "thick description of

    the fieldwork, the richness of the data collected and full reportage of the care using in its

    collection". Payne & Williams cited LeCompte and Goetz who argued that "reports should give

    extensive details of who the informants were; the social setting of the data collection; how the

    data were collected; the effect of the researcher's status in the process; and the researcher's

    original theoretical orientation".

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    Long & Johnson presented "self-description and reflective journal-keeping; respondent

    validation; prolonged involvement and persistent observation; peer debriefing; and triangulation"

    as some techniques for establishing the validity of a research study. Self-description and

    reflective journal-keeping allow the researcher to examine her own belief system and find out if

    the research is being led by the researcher's beliefs rather than unbiased presentation of the data

    as collected from the study participants. Following each respondent, the researcher would

    journalize personal perceptions and observations made during the survey. Once coding of, the

    data are completed, the researcher would return to the journal to make sure that study results

    reflect participant views rather than those of the researcher.Validity measures the amount of validity that the questions or data in a study are. For

    example, if there is a study condition on 'brand management 'so the validity measures the amount

    of validity that the questions in that study have. It is basically the extent or limit to measure the

    attributes and the concepts of a study. It can also by test if alternative questions are designed for

    the same study. It actually clears the concept of the meaning of the questions that have been used

    in previous studies. Validity is usually based on two types such as the construct validity and the

    face validity. The construct validity is usually found in the academic arena where as the face

    validity is present in the commercial arena. It is different from reliability and has its own uses

    and importance. The basic role of validity in a research is to help the researcher to generate

    authentic and valid results for his study. In order to achieve valid results, a researcher has to be

    very particular in reducing the errors that occur during a research such as coding errors ,

    misunderstood questions , poor sampling etc.

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    Credibility

    The concept of credibility in a research mainly focuses on the fact that all the results of

    the questions in the entire study are credible. The credibility of the derived results should be with

    reference to the participants involved in those particular results. It is said that the participants

    play the most important role when a study is being conducted because it is only them who know

    that the actual authenticity of the credibility of the results for the questions conducted in the

    research.

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    CHAPTER 4: DISCUSSION AND ANALYSIS

    In each company, customers are the most important element and are required to be

    handled and managed properly. The customers are satisfied when their expectations are fulfilled

    and delighted when their expectations are exceeded. Contented customers remain loyal buy more

    are less sensitive and speak positively about the company. Customer satisfaction normally

    indicates customer response to the state of fulfilment, and customer opinion of the fulfilled

    condition. Kotler (1997) defines customer satisfaction as: "Satisfaction is a person's feelings of

    pleasure or disappointment resulting from comparing a product's perceived performance (oroutcome) in relation to his or her expectations. Recently the concept of customer satisfaction has

    received much attention. Satisfaction may be defined as a consumer's post-purchase evaluation

    of a product or service. In the past, many businesses took their customers for granted. The

    customers often have no other choice, or the market is growing so fast that the company could

    drop 100 customers per week, but acquires another 1000 customers and believes its sales to be

    satisfactory. Such a company, working on a `leaky bucket' theory of business, considers that

    there will continuously be adequate customers to take the place of the defecting ones. One of the

    main reasons for the mounting importance on customer satisfaction is that higher customer

    satisfaction can direct to a stronger competitive place consequential in amplified market segment

    and earnings resulting in decrease price elasticity, drop business cost, reduce failure cost, and cut

    down the cost of attracting new customers. Satisfied customers purchase more and inform other

    people regarding their experiences. Companies should listen to and satisfy their customers.

    Numerous studies have shown that the long-term success of a company is closely linked with

    their ability to adapt to the needs of customers and varying preferences. Now days, customers

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    bring higher expectations for communication from its service providers and if companies are not

    able to meet these expectations, the customers will take their business elsewhere, leading to a

    disaster for the company. (Parasuraman 1991 pp 39-48)

    The consumers wants and expectations are altering all the time, this direct to a condition

    where customers creating ever higher benchmarks, and therefore to attain excellence is

    impossible. Applying customer satisfaction approach means recognizing customers, and then

    finding their wants and expectations, and to end with their perceptions. Knowing the customer's

    needs makes it easier to anticipate the ideal set of products and services to help them satisfy

    more. Telecommunication Companies have held historically major market positions in mostcountries. High technology markets can be characterized by continuous and rapid change of the

    markets and short life cycles of products. In high tech companies, technology is a key element of

    the company. (Patterson 1997 pp 4-17)

    A company's most important success factor is the ability to deliver better customer value

    than competitors do, and the objective of a strategy is to deliver value to the customers in order

    to provide required returns to the shareholders and employees. The clear importance of customer

    satisfaction compel various companies to conduct surveys of consumer satisfaction and report

    the level to which their customers are satisfied, from time to time, with or without the help of

    marketing agencies. Currently there is also an increasing managerial concern in using customer

    satisfaction as a decisive factor for identifying product performance and then relating customer

    satisfaction to both management and worker compensation.

    The proliferation of the mobile devices has been very fast during the last years especially

    in the developing countries, like China and India. In these countries for many people the only

    access to Internet is the wireless telecom terminal. In North-America, Europe, Japan, Korea and

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    Australia the mobile market is saturated and mobile portable devices offer a secondary access to

    Internet and various services that are mainly accessed using laptops or stationary PC machines at

    home or at workplace. Various social media sites, such as Flickr and Twitter have recently begun

    to offer a separate web interface for the small portable devices. The same holds for such business

    sites as Amazon.com and Google.com. In Finland e.g. Internet banking and online Lotto work

    fine was using smart phones. Thus, the usage of such social and business sites can now be done

    anytime anywhere by anybody. Based on the above short review of the term mobile community

    one can argue that there is no consensus yet about a common definition. One can further argue

    that there are currently mainly two kinds of mobile communities that can be distinguished basedon the technology in use. 1) Those using SMS (or MMS/mobile email) technologies offered by

    2G -4G mobile networks; 2) those relying (also) on Internet search engines and other Web 2.0

    technologies, such as Twitter, Facebook, YouTube, various blogs, etc. and services designed

    especially for mobile users (e.g. follow friends).

    The common feature of the above communities is that they are all groups of people

    sharing one or several things. The differences between the above communities come partially

    from the technology. In 1) people can use mobile telecom handsets and network infrastructure to

    form communities. The most severe restrictions are that the size of text messages is restricted to

    160 characters (in GSM and UMTS networks, i.e. in the most common 2G and 3G networks) and

    that the person sending a message to another must know the mobile subscriber number of each

    and every target person.

    There is no easy way to get hold of a large group of mobile phone numbers for an

    individual and the networks do not support subscriber lists unlike email clients and servers do.

    The SMS distribution lists can be, though, maintained at servers, and to a limited extent in smart

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    phones, but not at low-end devices. Type 2) mobile communities are actually virtual

    communities with a sole or an additional mobile access to the Internet infrastructure supporting

    the community. With smart phones offering sophisticated web browsers and fast wireless

    connections the user experience comes closer to "PC Internet" and when laptops are used to

    access the Web 2.0 sites, there is no much difference between the user experiences while using a

    desktop or portable terminal.

    The big difference to the former case is that the user wanting to join a social media site

    only needs to know one or a few URI. These can be obtained using search engines or reading

    popular press or following TV. Thus, the number of users (i.e. the community size) at mostpopular sites is currently hundreds of millions and the users come from all over the world. Why

    should we talk about mobile communities in the latter case?

    One can indeed argue that it is not essential that a user accesses YouTube with a smart

    phone, but rather that he or she accesses YouTube and thus belongs to a particular virtual

    community supported by YouTube. But in the current situation there is still a difference in the

    user experience that makes it feasible to talk about mobile YouTube community. This is not

    likely to disappear in any time soon. Another thing is that context aware services could be

    offered to mobile users also by the social media sites. These make less sense to stationary users.

    In a simple form many sites already offer this, namely a different user interface tailored for

    mobile devices (e.g. www.google.com/m.) and further context-aware services are in production

    (Nokia Ovi map services, Google maps). Thus, there are arguments to consider mobile

    communities as a special category also in the context of the type 2) virtual communities. (Perry

    1998, pp 785)

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    CHAPTER 5: CONCLUSION

    Cellular mobile services in Pakistan began in the 90s, when the two cellular phone

    licenses were granted to Paktel and Pak Com (Instaphone) for the provision of cellular mobile

    telephone services in Pakistan. Currently there are six cellular operators in the market. There has

    been a remarkable growth in Cellular market. The steady growth saw the addition of more than

    two million mobile phone subscribers every month throughout the last year. Network coverage

    of almost ninety percent of the total population of Pakistan has made mobile industry even more

    appealing for foreign investment.Pakistan comes forward as one of the fastest mounting mobile markets among the

    developing countries. This year the telecom sector grows by eighty percent, whereas in the last

    four years the average growth rate has been more than hundred percent. Total subscribers

    reached 76.9 million (December 2007) It was 34.5million in 2006 and 12.7million in 2005. In

    each company, customers are the most important element and are required to be handled and

    managed properly. The customers are satisfied when their expectations are fulfilled and

    delighted when their expectations are exceeded. Contented customers remain loyal buy more are

    less sensitive and speak positively about the company.

    Customer satisfaction normally indicates customer response to the state of fulfilment, and

    customer opinion of the fulfilled condition. Kotler (1997) defines customer satisfaction as:

    "Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a

    product's perceived performance (or outcome) in relation to his or her expectations. Recently the

    concept of customer satisfaction has received much attention. Satisfaction may be defined as a

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    consumer's post-purchase evaluation of a product or service. In the past, many businesses took

    their customers for granted.

    The customers often have no other choice, or the market is growing so fast that the

    company could drop 100 customers per week, but acquires another 1000 customers and believes

    its sales to be satisfactory. Such a company, working on a `leaky bucket' theory of business,

    considers that there will continuously be adequate customers to take the place of the defecting

    ones. One of the main reasons for the mounting importance on customer satisfaction is that

    higher customer satisfaction can direct to a stronger competitive place consequential in amplified

    market segment and earnings resulting in decrease price elasticity, drop business cost, reducefailure cost, and cut down the cost of attracting new customers. Satisfied customers purchase

    more and inform other people regarding their experiences. Companies should listen to and satisfy

    their customers.

    Numerous studies have shown that the long-term success of a company is closely linked

    with their ability to adapt to the needs of customers and varying preferences. Although Customer

    Relationship Management was popular as a means to tie customers to the company through

    different loyalty schemes, it left perhaps the greatest source of value-leveraged: the knowledge

    residing in customers. Consumer knowledge is one of the most important economic assets to the

    company.

    To know what customers value most in the company's products or services, helps

    companies optimize resource utilization in areas for continuous improvement based on their

    needs and wants. To achieve this goal, researchers focus on the data or text mining techniques to

    find unnoticed patterns in large amounts of data.

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    Companies equipped with customer information and knowledge have more opportunities

    to make correct decisions, produce desirable products or services, and deliver true value for

    customers. The most general interpretation reflect the idea that satisfaction is a feeling which

    results from a process of assessing what was received against that expected, the purchase

    decision itself and the fulfilment of needs or want. Investigators have also found customer

    satisfaction from a multi dimensional nature and view overall satisfaction as a function of

    satisfaction with multiple experiences with the service provider. In general satisfaction is

    developed on the information from all prior experiences with the service supplier and is consider

    as a function of all prior transaction.Now days, customers bring higher expectations for communication from its service

    providers and if companies are not able to meet these expectations, the customers will take their

    business elsewhere, leading to a disaster for the company. The consumers wants and

    expectations are altering all the time, this direct to a condition where customers creating ever

    higher benchmarks, and therefore to attain excellence is impossible. Applying customer

    satisfaction approach means recognizing customers, and then finding their wants and

    expectations, and to end with their perceptions.

    Knowing the customer's needs makes it easier to anticipate the ideal set of products and

    services to help them satisfy more. Telecommunication Companies have held historically major

    market positions in most countries. High technology markets can be characterized by continuous

    and rapid change of the markets and short life cycles of products. In high tech companies,

    technology is a key element of the company. A company's most important success factor is the

    ability to deliver better customer value than competitors do, and the objective of a strategy is to

    deliver value to the customers in order to provide required returns to the shareholders and

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    employees. The clear importance of customer satisfaction compel various companies to conduct

    surveys of consumer satisfaction and report the level to which their customers are satisfied, from

    time to time, with or without the help of marketing agencies. Currently there is also an increasing

    managerial concern in using customer satisfaction as a decisive factor for identifying product

    performance and then relating customer satisfaction to both management and worker

    compensation.

    According to an estimate, developing countries, for instance, Bangladesh and Pakistan

    constitute nearly 67 per cent of all mobile subscriptions in the world. 1 Since 2002, Pakistan has

    been rated as one of the fastest growing cellular markets enjoying an above average growth rateas compared to the rest of its competitors. This extraordinary achievement in terms of growth

    and retention of customer base highlights a need to explore the underlying factors of customer

    loyalty in the telecommunication industry of Pakistan. This exploratory research becomes all the

    more important in view of the fact that in this era of time space compression, 2 the consumer is

    offered better alternatives, customized solutions, product improvements, refinements and

    innovations that are predicted to be at record levels. 3 Such abundant availability of choice make

    consumers become and remains loyal only if he or she believes that the firm's products are the

    best choice alternative. 4 Research evidences indicate that customers can stay with a service

    provider, when they perceive the service quality to be high and behave conversely, when the

    service is perceived to be low. 5 7 any such firm that claims to have a strong and loyal

    customer base definitely enjoys a competitive advantage among its rivals.

    It has been estimated that customers who exhibit loyalty, not only reduce the marketing

    costs of doing business, 8 but also, lessen the need to incur customer acquisition costs. 9 Some

    researchers estimate that it costs more to acquire new customers than to prevent them from

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    defecting. Although the figures might vary across industries, but a cautious estimate suggests

    that it is possible to increase profits by 60 per cent by averting potential migration upto 5 per

    cent. A number of researchers have also promoted the linkage between customer satisfaction and

    loyalty and the financial performance of service organizations.

    This study attempts to evaluate an empirical model for Customer Loyalty in the

    telecommunication industry of Pakistan. It makes use of a theoretical model 16 that captures

    variables that encourage, as well as maintain loyalty of customer for a service provider. It further

    seeks to evaluate the interdependence of these variables that ultimately create an impact on the

    customer loyalty in the telecommunication services market. Lastly, the study focuses upon theattitudes and behaviours in creating and maintaining customer loyalty with the help of

    demographic details of the sample. Cellular service in the telecommunication industry has

    strongly influenced both human identity and social interaction as substantiated through the

    influence of trust, relation interact and recommendation factors and so on, on customer loyalty.

    The pervasiveness of mobile phones in the daily routine of its users, render it the position of a

    social object, which is a shift from its earlier acquired technological status. This service has

    gradually attained the status of another vital marketing communication channel, next to

    electronic and print media.

    A large number of companies have been observed to adopt sales promotion by sending

    discount coupons through mobile phone text messages, or through SMS (m-coupons). In

    individuals, the use of mobile phone text messaging is the dominant mode of electronic

    communication among students. It plays a central role in maintaining their social networks and

    also facilitates an informal system of interdependent learning. The text message dialogue among

    students also provides them an emotional and social peer support. This research has identified

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    that the factors that shape the loyalty of customers in the telecommunication industry of Pakistan

    are not limited to the ones that are explored in the model, for instance, trust, TSQ, SC and SL.

    They might also be investigated through intersection of social categories such as youth, gender

    and ethnicity with cellular technology in order to understand complexity of use. The researchers

    have tried to incorporate these above mentioned factors as well in order to get a holistic picture

    of the customer loyalty in telecommunication industry of Pakistan. Future researches could focus

    on the utilization of cellular service from the perspective of demographic details, socioeconomic

    status and ease of technology adoption.

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